Munbai: David Rhodes, managing director for the financial institutions practice at Boston Consulting Group, sees consolidation in the banking industry as a logical outcome as the Indian economy matures and customers demand bigger and better banks.

In an interview, Rhodes also spoke about the problems the euro zone may face on account of deficits and demographic profiles. Edited excerpts:

What is your take on banking consolidation in India?

I don’t know what is in the mind of regulators, but if we look at the history of the world, I would expect some amount of consolidation. Recognizing any perception about too big to fall doesn’t take away the need for consolidation. Customers will be interested to be part of a larger and more efficient organization. India is going through the period of building new banks, growing with the market—you are witnessing explosive growth. When growth slows, and the economy matures, over that period you clearly expect some consolidation. Because consolidation is not inconsistent with making sure the banking system is safe.